Industrial Relations Nexus Hrm Ir

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    Nexus between Labor and Management

    No Time for Complacency

    1

    http://graphicleftovers.com/deposit/485117/
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    MH 2

    Human Resource Management

    McClean

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    MH 3

    What is HRM?

    HRM functional definition

    Is a set of interrelated functions and processes

    whose goal is to attract, socialize, motivate,

    maintain, and retain employees

    HRM goal-based definition

    aims to improve the productive contribution of

    individualswhile simultaneously attempting to attain

    other societal and individual employee objectives

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    MH 4

    Important termsHuman resource:Knowledge, skill sets, expertise of employees, the adaptability,

    commitment and loyalty of employees.

    Ski l ls :The individual abilities of human beings to perform a piece of work.

    Resource:The stock of assets and skills that belong to a firm at a point of time

    Capabi l i ty :The ability of a bundle of resources to perform an activity; a way of

    combining assets, people and processes to transform inputs into outputs.

    Core com petencies:Activities that the firm performs especially well whencompared to its competitors and through which the firm adds value to its goods and

    services over a long period of time.A unique capability in the organization that

    creates high value and that differentiates the organization from its competition.

    Competi t ive advantage:It comes from a firm's ability to perform activities more

    distinctively and more effectively than rivals. To attain competitive advantage, firmsneed to add value to customers and offer a product or service that cannot be easily

    imitated or copied by rivals (Uniqueness).

    Value:Sum total of benefits received and costs paid by the customer in a given

    situation.

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    MH 5

    Important termsProductivity: The quantity and quality of work relative to resources

    used, often expressed as a ratio of output / input. A measure of

    organizational performanceEfficiency:An input measure of the cost of resources

    Effectivenes:An output measure of goal accomplishment.Organization:A collection of people working together to achieve a

    common purposeOrganization purpose :To provide society with good and services

    Mission Statement:A description of the organizations purpose, goals,values and priorities.

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    MH 6

    What is Industrial Relations?

    The making and administering of the institutions and rulesof work regulation

    Socio-industrial conflict (in all its forms) and its resolution

    Explicit and implicit bargaining between employees andemployers

    A particular set of phenomena associated with

    regulating the human activity of employment

    Industrial relation is the study of employment andlabor market. It assesses factors that shapesemployer, government and workers relationship inenterprises, industries and across labor markets

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    Concept of Industrial Relations

    Concept of Industrial Relations:

    Industrial Relations comprises of two terms:IndustryandRelations.

    1. Industryrefers to any productive activity in which anindividual (or a group of individuals) is (are) engaged.

    2. Byrelationswe mean the relationships that exist withinthe industry between the employer and his workmen.

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    Evolution of HRM

    Each slice relates to workforce responsible for businessproductivity not attainable in a state of chaos. Hence theimportance ofIR

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    HRM serves 3 primary entities:

    The organization Society

    Individual employees and

    What Does HRM Do?

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    Another aspect of human resource managementrelates to the influence of organized labor.

    Labor unions are organizations to which workersbelong that deal with employers on the workers

    behalves. Labor unions act as bargaining agents,negotiating legal contracts that affect manyaspects of human resource management.

    The foundation of any labor and managementrelationship is collective bargaining, which is

    the process of negotiating, administering, andinterpreting labor contracts.

    Labor-Management Relations

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    Industrial dispute

    An industrial dispute may be defined as a conflictor difference of opinion between managementand workers on the terms of employment.

    It is a disagreement between an employer and

    employees' representative; usually a trade union,and other working conditions and can result inindustrial actions.

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    Industrial dispute

    MH 12

    When an industrial dispute occurs, both theparties, that is the management and theworkmen, try to pressurize each other. Themanagement may resort to lockouts while the

    workers may resort to strikes, picketing orgheraos.

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    Organs with Conflicting GoalsThere are different types of organizations:1.Big organization, small organization, local or

    international.2. They constitute of 3 main actors: Shareholder- represented by management, association of

    employers. Always to gain as much profit andproductivity.

    Employees- being represented by trade unions. To getgood salary and good working conditions

    Government; being represented by specializedgovernment agencies concern with workers, enterpriseand their relationship. Try create industrial harmony

    Each of the actors above always conflicting between oneanother in order to achieve their objectives.

    3. Besides the above 3 main actors, in the present contextacademicians have also considered another actor whichcan also influence the nature of IR i.e Stakeholders.

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    Conflict

    Conflict result from industrial and organizationalfactors.

    1. Different roles ofmanagement and employees

    Mgrs responsible for efficiency, productivity and

    profitability Employees: more of personal terms (better pay,

    good working conditions and good job security).

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    Personalities who cause conflict

    Aggressive

    Passive

    Absentee

    Error prone Negative attitude

    Chatterbox

    Do nothing

    Unreliable

    Time waster

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    ORGANIZATION AS AWORKPLACE

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    MH 1717

    Dealing with Office Politics and Resolving Conflict

    Office politics cause significant problems for the IR managerand the organization, including: Politics inhibit productivity Politics stifle creativity Politics cripples teamwork

    Overt negative politics alters communication

    Basic indicators of overtly political behavior include: Double-talk Backstabbing Power mongering Victim role Game playing

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    MH 18

    Aligning Organizational GoalsFocusing mission and value

    Vision

    Alignment

    Mission

    Vision

    Mission

    ASK: Whether bond between HR and IR becoming healthy?

    CHAOS ProductivitySubstandardPerformance

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    MH 19

    Growth

    Competition

    Prosperity

    Success

    Competent Employees

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    Resolution

    MH 20

    Promotion of measures ofsecuring & preserving amity& good relationship between

    workmen & employerInvestigation and settlement

    of dispute between employer& workmen, workmen &

    workmen, employer &employer as well asassociations of employers &workmen

    h i b

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    MH 21

    Aligning employees to a common sets of objectivesderived from the mission and value statements,

    Mitigation of risk by devising appropriate SuccessionPlanning Strategies,

    Identification of top-performers and non-performers,

    Continuous measurement of the effectiveness of

    leadership and employee satisfaction, Increasing employee engagement through appropriatemeasures,

    Aligning compensation to performance,

    Adjustment of recruitment and training to competencygaps,

    and specifying well-defined Job Descriptions which mapto the organization structure . These become the basis ofRecruitment, Goal Setting, Training, Performance Evaluation

    and Career Development.

    Shaping a Robust Nexus: HR-IR

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    MH 22

    Job Satisfaction..

    Workplace support (flexible schedules, etc)

    autonomy

    meaningfulness

    opportunities for learning & advancement job security are highly related to job satisfaction

    pay and benefits have little effect on jobsatisfaction.

    E l E t (R h)

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    MH 23

    Employee Engagement (Reseach)

    At least four studies agreed on these eight key drivers.

    Trust and integrity how well managers communicate and 'walk thetalk'.

    Nature of the jobIs it mentally stimulating day-to-day?

    Line of sight between employee performance and companyperformance Does the employee understand how their

    work contributes to the company's performance? Career Growth opportunitiesAre there future opportunities for growth?

    Pride about the company How much self-esteem does the employeefeel by being associated with their company?

    Coworkers/team members significantly influence one's level of

    engagement Employee development Is the company making an effort to develop

    the employee's skills?

    Relationship with one's manager Does the employee value his or herrelationship with his or her manager?

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    MH 24

    Research Workforce engagement

    characteristics:

    Satisfaction Understanding Contribution

    Alignment Retention

    Workforce Engagement Metrics

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    MH 25

    1) An expressed intention to remain with anorganization2) The variety of skills and competencies their jobrequires3) The organization's commitment to satisfyingcustomers4) The amount of cooperation within and acrossfunctions5) Consistent communication regarding roles andexpectations6) Training to improve their contributions to the

    organization7) Freedom and discretion in their jobs and access toresources and information8) Competent, expert managers who are open to ideasof their employees

    Factors Influencing EmployeeSatisfaction and Engagement

    A h t E l E t

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    MH 26

    Research-10 effective approaches for improving employeeengagement:

    1. Rewards and Recognition2. Human Capital Infrastructure3. Learning Management4. Knowledge Management5. Performance Appraisal

    6. Workplace Design7. Employee Relations8. Career Development9. Human capital strategy

    10.Recruiting

    Approaches to Employee Engagement

    Employee engagement, or worker engagement, is a businessmanagement concept. An "engaged employee" is one who is fully

    involved in, and enthusiastic about, his or her work, and thus willact in a way that furthers their organization's interests.

    T Th th t C

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    MH 27

    An analysis of employee responses to opinion

    surveys in Asia

    A job security 1B enough help and resources 2

    C friendly, helpful co-workers 3D interesting work 4E good working conditions 5F enough authority 6G good wages 7H opportunities to development 8

    I enough information 9J full appreciation of work done 10K competent supervision 11L clearly defined responsibilities 12

    Top Themes that ConcernEmployees Satisfaction Most

    E i Ch ll

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    MH 28

    Economic Challenges

    Two related challenges:

    Global trade international trade and competitionwith other markets

    Need for productivity Improvement

    More output with equal (or less) input

    HR Implications Need to contribute to international competence of

    workers (via training, etc.)

    Potential workforce reductions can result in job

    insecurity and negative effects on workers

    C l W k E i t

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    MH 29

    Complex Work Environment

    Industrial society is a complex and dynamic society

    (consist of group, societies and institution) they areinterrelated, however have different attitudes andperceptions. They are also being influenced by externalenvironment.

    We cannot ignore the working aspect of humanbeing, as working hour dominate most of our time.

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    MH 30

    HR Management

    Only 2 imp. Parties employeeand employer

    Objectives, policies, procedureand programs of human resourcesand implement them

    Individual employee contactswith the immediate superior.Grievance and disciplinary

    procedures are resorted to, tosolve the employee-employerconflicts.

    Reformulates the objectives,policies etc ,based on industrialconflicts which are the outcomeof unsound industrial relations.

    HRM is the overall managementof all resources includingworkers, staff, executives, Topmanagement and even suppliers

    and customers.

    Industrial Relations

    Relationship between workforce& management

    The implementation of HRMpolicies results in IR.

    There are four important partiesnamely employees, employer,trade unions and government

    The sound IR contributes to the

    organizational goals. Theunsound IR result in industrialconflicts demanding for changeand reformulation of HRMobjectives and goals

    Employees contact even the topmanagement as a group.

    Collective bargaining and formsof industrial conflicts are resortedto solve the problems

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    MH 31

    Industrial Relations

    Industrial relations are governed by the system of rules and

    regulations concerning work, workplace and workingcommunity

    The main purpose is to maintain harmonious relationsbetween employees and employer by solving their problemsthrough grievance procedure and collective bargaining.

    Trade Unions is another important institution in theIndustrial relations. Trade unions influence and shape theindustrial relations through collective bargaining.

    Industrial relations are the relations mainly betweenemployees and employers

    These relations emphasis on accommodating other partiesinterest, values and needs. Parties develop skills of adjustingto and cooperating with each other.

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    MH 32

    Industrial Relations

    Industrial relations has become one of the most delicate and

    complex problems of modern industrial society. Industrialprogress is impossible without cooperation of labor andharmonious relationships. Therefore, it is in the interest of allto create and maintain good relations between employees(labor) and employers (management).

    The main purpose is to maintain harmonious relationsbetween employees and employer by solving their problemsthrough grievance procedure and collective bargaining.

    Trade Unions is another important institution in theIndustrial relations. Trade unions influence and shape the

    industrial relations through collective bargaining.

    Industrial relations are the relations mainly betweenemployees and employers

    These relations emphasis on accommodating other partiesinterest, values and needs. Parties develop skills of adjusting

    to and cooperating with each other.

    Competitive edge will largely depend on

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    Learning is not compulsory

    neither is survival!W Edward Deming

    Competitive edge will largely depend onknowledge workersability to perform